Greek ports are a new battleground between the United States and China

In his attempt to expand his influence in Greek port facilities, Washington He came face to face with the unified presence of BeijingFor a decade, it controlled most of the port Piraeusthe largest and most important in Greece.

Trade relations between Greece and China intensified and strengthened during the years of the financial crisis, when the country was subjected to strict austerity measures by international creditors. At this time of economic instability and massive privatizations of Greek public companies, Chinese state-owned giant COSCO has made its bid for the management of Piraeus, beginning a process that will culminate in 2021.

In 2009, COSCO obtained the concession to establish two terminals in the port of Piraeus and built a third, at a time when Greece, which was on the verge of economic crisis, was seeking to attract foreign investment.

The privatization of the port accelerated during the government of Alexis Tsipras and after the signing of the third economic bailout plan. In 2016, Cosco was the only one to submit a bid to take over management of the port, acquiring 51% of the port authority for a period of 35 years, in exchange for a commitment to invest 350 million euros in infrastructure. The deal was completed in 2021, when Cosco acquired an additional 16%, bringing its stake to the current 67%.

With this strategic investment, China has strengthened its control over the main Greek port and strengthened its presence on the sea routes leading to Central and Eastern Europe.

COSCO’s investments – exceeding one billion euros – have transformed the port of Piraeus into one of the most important container ports in the Mediterranean and the fifth largest container ports in Europe. Today, the Greek port is the main gateway for Chinese exports to the European Union, linking Europe to Asia via the Red Sea and Indian Ocean, and is one of the main poles of the New Silk Road.

China’s expansion into the European port sector is not limited to Greece. As of 2022, COSCO will own 25% of the Tolrort terminal in Greece. Hamburg It maintains negotiations to expand its presence in Serbia and Hungary.

Greece’s geographical location makes it a major center for trade, energy and security in the eastern Mediterranean. In the India-Middle East-Europe Economic Corridor (IMEC), the Greek state also serves as a gateway to the European continent. In parallel, Greece is also working to consolidate its position as an energy hub through projects such as the large underwater interconnection project, which It will firmly unite Europe with Cyprus and Israel. In addition, there is the presence of the American military base in Souda, on the island of Crete, which is one of Washington’s most important defensive enclaves in the region.

Sanctions imposed on Russia due to the war in Ukraine have allowed the United States to strengthen its presence in the European energy market, especially by increasing LNG exports to Eastern Europe. To maintain its dominance in the region, Washington considers it necessary to limit China’s influence and ensure control and access to key Greek port infrastructure. For this reason, it is negotiating with Athens to acquire part of the port of Eleusis that will operate parallel to the port of Piraeus.

Prime location of Eleusis, a few kilometers from Piraeus, in the industrial heart of Eleusis Attica Connected to the country’s major railway and highway network, it makes it an essential enclave for ensuring energy security and defending the Eastern Mediterranean. The United States intends to transform Eleusis into a major logistics center and the second most important port in Greece, with the capacity to serve commercial ships transporting bulk cargo, containers and liquefied natural gas, but also to support military operations as a base for warships.

The project will receive an investment of $125 million from the International Development Finance Corporation (DFC). According to the Greek Minister of Development. Takis TheodorikakosThis agreement would strengthen the country’s economy, attract “new investments, new infrastructure, and enhance the competitiveness of key sectors” of the country’s economy.

The new American ambassador

The new US ambassador to Greece arrives in Athens at the beginning of November. Kimberly GuilfoyleIt is part of Washington’s attempt to strengthen its presence in the eastern Mediterranean. Guilfoyle, a former prosecutor, former lieutenant colonel, friend and former adviser to Trump and the ex-girlfriend of one of his sons, played an important role in fundraising during the 2020 election campaign. At 55, she became the first woman to serve as head of the US mission in Greece. His appointment comes in response to the Trump administration’s strategy of appointing people from his inner circle – not members of the diplomatic corps – to strategic embassies, to advance US interests and enhance cooperation with key countries.

His first public appearance was a few days after taking office, during the sixth conference of the Transatlantic Energy Cooperation Association, a meeting in which 24 European energy ministers and the US Secretary of Energy participated, with the aim of strengthening cooperation with Europe on the energy transition.

Guilfoyle’s mission in Greece, she noted, is to “advance an agenda focused on strong economic growth, education, energy security and defense cooperation.” After her appointment as ambassador was announced by the US Senate in September, Guilfoyle expressed on social media her gratitude to Trump for the trust he placed in her and stressed that “Greece is a valuable NATO ally, plays a key role in the European Union, and is a fundamental pillar of regional stability and security.”

After the appointment of the new ambassador, the Greek Prime Minister, Kyriakos MitsotakisHe stated that he “would not pay much attention” to Guilfoyle’s election because “the era in which American ambassadors determined events, even domestic political events, is something that belongs to another century.” But the truth is that since his arrival in Athens, Guilfoyle maintained an intense agenda with the Greek government He met with Mitsotakis and most of the country’s ministers, with whom he signed trade, energy and defense agreements. In addition, her presence in local media continues.

Diplomatic tension

Statements made by Guilfoyle in one of his first interviews in Greek media, in which he described the Chinese management of Piraeus as “unfortunate” and suggested that “there are ways to circumvent” that control, sparked an immediate reaction from Beijing, which called the words “unacceptable” and accused Washington of interfering in Greece’s internal affairs.

After the diplomatic clash, Athens insists that it will respect its commitments to China while keeping the door open to further rapprochement with the United States. Especially in matters of security and defense.